Short answer: "good" depends on your credit, but you can measure any offer against public benchmarks. The Federal Reserve reports that commercial banks charged an average of 11.57% APR on 24-month personal loans in the second quarter of 2026 (Federal Reserve G.19). Two legal caps are useful markers higher up: federal credit union payday alternative loans are capped at 28% (NCUA), and the Military Lending Act limits most consumer loans to active-duty servicemembers and their dependents to 36% (CFPB).
APR benchmarks
| Benchmark | APR | What it tells you |
|---|---|---|
| Commercial bank average, 24-month personal loan | 11.57% (Q2 2026), 11.14% (Q1 2026) (Fed) | What bank borrowers, who often have good credit, paid on average |
| Federal credit union PAL | Interest capped at 28% (NCUA) | A ceiling for small credit union loans |
| Military Lending Act | 36% Military APR cap (CFPB) | Federal limit for most consumer loans to servicemembers |
| Typical payday loan | Almost 400% for a two-week loan at $15 per $100 (CFPB) | Why short single-payment loans cost so much |
What the APR difference means in dollars
Example: $5,000 over 24 months. Monthly payment = P x r / (1 - (1 + r)-n), r = APR / 12.
| APR level | APR | Monthly payment | Total interest |
|---|---|---|---|
| Bank average (Fed, Q2 2026) | 11.57% | $234.36 | $624.75 |
| Example | 18% | $249.62 | $990.89 |
| PAL interest cap (NCUA) | 28% | $274.44 | $1,586.62 |
| MLA cap for servicemembers (CFPB) | 36% | $295.24 | $2,085.69 |
Going from the bank average to 36% roughly triples the interest on the same loan, from $624.75 to $2,085.69.
What moves your APR
- Your credit score: on the FICO scale, 670 to 739 is "good" and below 580 is "poor" (myFICO).
- Your debt-to-income ratio: lower is better (CFPB).
- The term and amount: lenders price each loan differently.
- Fees: the APR includes loan fees like origination fees, so it can be higher than the interest rate (CFPB). See our origination fee calculator.
How to judge an offer
Compare offers for the same amount and term by APR and by total repayment. If an APR is far below the bank average while your credit is poor, or a company asks for money before the loan, be careful: see our guide to advance-fee loan scams.
Participating lenders may be able to provide personal loans of up to $15,000, and up to $5,000 for installment loans. Not all lenders can provide these amounts, and approval is not guaranteed.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- Federal Reserve: G.19 Consumer Credit release (October 7, 2026), commercial bank interest rate on 24-month personal loans
- MyCreditUnion.gov (NCUA): Payday Alternative Loans
- CFPB: I am in the military, are there limits on how much I can be charged for a loan?
- CFPB: What are the costs and fees for a payday loan?
- myFICO: What is a Credit Score? (FICO Score ranges)
- CFPB: What is a debt-to-income ratio?
- CFPB: What is the difference between a loan interest rate and the APR?